Executive losses a worry

The resignation of four chief executives of listed Australian residential developers is an ominous sign for the sector, CLSA analysts say. “Australand, Mirvac and Stockland have written down $1.4 billion since FY08, which will likely continue given falling prices, rising costs and record high-capitalised interest on balance sheet," CLSA told clients, and the resignations foreshadow weak earnings and impairments ahead. The research team is recommending investors avoid residential developers, with
Australand
the only “buy" in CLSA’s coverage.
Mirvac
has been tagged with “underperform" and a “sell" has been slapped on
Stockland
.